Travel Insurance Model Act

What this document is

Travel Insurance Model Act is a naic model law published by National Association of Insurance Commissioners (NAIC). It is one of the documents that insurance license exam questions are written from, including life & health practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• NAIC Model NAIC 632: Section 4C(3) (Retailer Disclosures)

  “Explains that an unlicensed Travel Retailer is permitted to provide only general information about the insurance offered by the Travel Retailer, including a description of the coverage and price, but is not qualified or authorized to answer technical questions about the terms and conditions of the...”

• NAIC Travel Insurance Model Act § 3N (definition of Travel Insurance and its exclusion)

  “Travel Insurance does not include major medical plans that provide comprehensive medical protection for travelers with trips lasting longer than six (6) months, including for example, those working or residing overseas as an expatriate, or any other product that requires a specific insurance producer license.”

• NAIC Travel Insurance Model Act § 7D (opt out)

  “No person offering, soliciting, or negotiating Travel Insurance or Travel Protection Plans on an individual or group basis may do so by using negative option or opt out, which would require a consumer to take an affirmative action to deselect coverage, such as unchecking a box on an electronic...”

• NAIC Travel Insurance Model Act § 4D (conduct barred to unlicensed travel retailer employees)

  “A Travel Retailer employee or authorized representative, who is not licensed as an insurance producer may not: (1) Evaluate or interpret the technical terms, benefits, and conditions of the offered Travel Insurance coverage; (2) Evaluate or provide advice concerning a prospective purchaser’s...”

• NAIC Travel Insurance Model Act § 7B (Illusory Travel Insurance)

  “Illusory Travel Insurance. Offering or selling a Travel Insurance policy that could never result in payment of any claims for any insured under the policy is an unfair trade practice under [insert reference to NAIC model Unfair Trade Practices Act (#880)].”

• NAIC Travel Insurance Model Act § 5B(2) (Premium Tax, amounts reported as premium)

  “Report as premium only the amount allocable to Travel Insurance and not any amounts received for Travel Assistance Services or Cancellation Fee Waivers.”

• NAIC Travel Insurance Model Act § 9C (Policy, eligibility and underwriting standards)

  “Eligibility and underwriting standards for Travel Insurance may be developed and provided based on Travel Protection Plans designed for individual or identified marketing or distribution channels, provided those standards also meet the state’s underwriting standards for inland marine.”

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Questions about this source

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